The National Pension Office has issued an order against British American Insurance Company to protect the assets administered by BAICO.
The order follows the move by the Cayman Islands Monetary Authority on Friday 11 September to put the BAICO under controllership.
The order requires BAICO to report to the Pensions Office with information necessary to properly regulate the registered multi-employer pension plan operated by BAICO.
The order, issued by the Superintendent of Pensions under section 70 of the National Pensions Law, is the result of repeated failures of BAICO to provide requested information. The information sought by the pension regulator includes BAICO’s overdue audited financial statements, the annual information return and a detailed report of all contributions received by the pension plan from its inception until the end of September 2009.
The order was served on 15 September and has been filed with the Grand Court, which gives it the power of a court order and makes it enforceable as such.
The Pension Office has met with the controllers of BAICO, appointed by CIMA, to underline the significance of the requested information.
A cease and desist order issued by CIMA against BAICO in June, prevents the company from engaging in new business, but permits the pensions provider to receiver pension contributions from existing members of its pension plan. BAICO currently manages at least 1,000 annuities in the Cayman Islands.
Employers and employees, who are considering alternative pensions arrangements, can choose from five other registered, multi-employer pension plans available in the Cayman Islands, the Pensions Office said in a statement.
The Acting Superintendent and the National Pensions Board will monitor the situation and evaluate whether additional measures under the Pensions Law are required.